Key Themes and Most Important Ideas/Facts

1. Launch of “Build Canada Homes” Agency

• New Government Agency: Build Canada Homes will be a new government agency “tasked with getting more affordable housing built.”
• Prime Ministerial Launch: Prime Minister Mark Carney will formally launch the initiative on Sunday, ahead of Parliament’s return, fulfilling a campaign promise. Housing Minister Gregor Robertson will accompany him.
• Core Mandate: The agency’s central role is “to double the rate of homebuilding in the country.”
• Multi-faceted Approach: Build Canada Homes will act as a “developer to build affordable housing, spur innovation in the housing sector and offer low-cost financing to affordable-housing builders.”
• Partnerships: The agency will “partner with builders and housing providers that are focused on long-term affordability – including cooperatives, community housing developments or builders that promote attainable homeownership solutions.” Non-profit housing advocates have “applauded the government for prioritizing non-market housing.”

2. Initial Initiatives and Investments

• Public Lands Development: A key focus will be “developing housing on public lands.” The “first tranche of sites for these developments will be located in Dartmouth, N.S., Longueil, Que., Ottawa, Toronto, Winnipeg and Edmonton.”
• Transitional and Supportive Housing: A separate initiative will address “homelessness and housing insecurity.” This program will involve Ottawa “work[ing] with other levels of government to provide wrap-around services, which are additional supports provided to vulnerable individuals.”
• Four Investments/Initiatives: The announcement will include “four investments and initiatives,” with public lands housing and supportive housing being two explicitly mentioned.

3. Context of the Housing Crisis

• Stagnant Housing Starts: “Housing starts across Canada’s seven key census metropolitan areas in the first half of 2025 have been flat relative to 2024,” according to the Canada Mortgage and Housing Corp. (CMHC).
• Regional Disparities: While overall stability was noted, the CMHC report indicated “sharp regional differences.”
• Toronto’s Decline: “Housing starts in Toronto, for example, plummeted to the lowest rate since 1996, when adjusting to population.”
• Risks to Future Supply: The “continuing construction slowdowns across major metropolitan areas ‘pose risks to future housing supply, workforce retention and affordability.'”
• Outlook: The CMHC expects “combined starts across the 7 major CMAs to recover only gradually, with modest improvement by 2027,” citing “trade tensions, economic uncertainty and slower population growth.”
• External Factors: “Both U.S. tariffs and slowing economic activity have weighed on housing construction, raising concerns that Canada could fall further behind on its homebuilding ambitions.”

4. Political Context and Urgency

• Campaign Promise: Build Canada Homes is a “campaign promise” that Prime Minister Carney is checking off before “squaring off with Conservative Leader Pierre Poilievre in the House of Commons for the first time” as Parliament returns.
• Stakeholder Feedback: The government previously “released a document last month on Build Canada Homes, asking stakeholders for feedback on the initial vision of the new agency.”
• Call for Swift Action: Non-profit housing advocates have been “urging the government to take swift action to spur construction and not wait for the” (unspecified delay).

Conclusion

The launch of Build Canada Homes signifies a significant government effort to tackle Canada’s housing affordability and supply challenges. By focusing on public land development, supportive housing, and fostering innovation, the government aims to accelerate homebuilding. However, the initiative faces an uphill battle against current trends of stagnant housing starts, economic headwinds, and trade tensions, underscoring the urgency for the new agency to deliver tangible results quickly.